Hello Crypto Friends!
How are you going? Hope the recent drop has not clouded your judgement with emotion!?
I thought i would share my thoughts on the current situation as things could get a little crazy on Monday!
If your new to this market or trading this market then you might not know about weekends and how they can very deceitful in BTC land.
With everyone calling for lower lows and new bottoms on BTC, which could happen, i would advise to keep your wits about you!
Before i say anymore, let me share a chart with you-
So for people that have followed me you will know i was pointing out the falling wedge on the RSI-
We broke out the bottom of it then went managed to break through it and up. Well u will notice that price action is kind of delayed here.
Am i short? Of course i am! However i am very wary about what has just happened.
The drop did not occur during normal market hours, it happened at the weekend, which is normally contrary to weekday price action.
The volume on this current drop was very lack luster. Its much easier to manipulate price during weekends during to low volume.
You will notice that the bottom of the green wedge has acted as support...
You will notice that the rising channel actually fits price action very well-
Notice how the mid line of the falling channel catches the tops perfectly.
Also that this could be hidden bullish divergence....
And that we have a falling wedge on low time frame price action.
As much as i would like trading to be straight forward and easy, it normally is not.
I will keep my short open, i have already taken profits though, however i am ready to switch long if -
-We stay above 6k
-We break $6450 to the upside
-We get above and stay above the 236 fib (bounce from the golden pocket)
Keep an eye on your 1 hr charts!
Stay short but stay sharp!